Q. I’m confused about how the taxable flag should be set for the various fixed income securities.  Everything seems to come in marked as taxable. Can you help?

A.For most brokers new fixed income securities default to state taxable “yes” and federal taxable “yes.”  For the most part this information must be manually changed and updated.

The quickest way to review and update your taxable flags is to use the Securities Data Manager.

Security Type State Taxable Federal Taxable
Municipal No No
Corporate Yes Yes
Fed Home Loan No Yes
US Treasuries No Yes
CTF No Yes
Fing Yes Yes
CATS Yes Yes